In this article, we will look at the 10 Best Stocks to Invest in For the Long Term.
Is This the Time to Invest in Both Stocks and Bonds?
On August 14, Anastasia Amoroso, Partners Group chief investment strategist for private wealth and retirement, appeared on CNBC’s ‘Closing Bell’ to talk about why she is betting on more upside in today’s equity markets.
Discussing whether there is better value in stocks or bonds, she stated that she does not think we are that far away from the neutral rate or terminal rate, and would perhaps see 75 basis points or 100 basis points of rate declines, which would surely prop up the bond market.
However, she also stated that, generally speaking, she sees more value in the bond market, both public and private. There is a lot more innovation in the domain, with considerably more room for earnings growth and potentially for earnings revisions.
She expects the September rate cut to extend the rally into year-end, with a series of cuts possibly cushioning higher tariff adjustments.
READ ALSO: 13 Most Buzzing Stocks to Invest in Right Now and 12 Cheap Stocks That Will Go to the Moon According to Reddit.
Amoroso added that the IPO market in general is perking up: 21% year-over-year in terms of IPO activity and around 30% in terms of M&A activity. These factors tell her that there is a value unlock that is likely to happen from this crossover from private to public market.
With these trends in view, let’s look at the best stocks to invest in for the long term.
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Our Methodology
We conducted a consensus and used Finviz to compile an initial list of top stocks with a 5-year revenue growth above 10%. We then selected the top 11 stocks with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. We also added the analyst upside potential for each stock. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on August 16.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. ConocoPhillips (NYSE:COP)
5-Year Revenue Growth: 18.80%
Analyst Upside: 20.63%
Number of Hedge Fund Holders: 70
ConocoPhillips (NYSE:COP) is one of the best stocks to invest in for the long term. In a report released on August 13, Scott Hanold from RBC Capital maintained a Buy rating on ConocoPhillips (NYSE:COP) and set a price target of $113.00.
ConocoPhillips (NYSE:COP) reported its fiscal Q2 2025 earnings on August 7, with earnings per share for the quarter reaching $1.56 and adjusted earnings per share of $1.42.
Generated cash provided by operating activities was $3.5 billion, while cash from operations (CFO) in Q2 reached $4.7 billion. ConocoPhillips (NYSE:COP) also declared a Q3 ordinary dividend of $0.78 per share.
ConocoPhillips (NYSE:COP) is an exploration and production company that explores, transports, produces, and markets natural gas, crude oil, and bitumen.
It operates through the following geographical segments: Alaska, Lower 48, Canada, Europe, the Middle East, and North Africa, Asia Pacific, and Other International.
9. Palo Alto Networks, Inc. (NASDAQ:PANW)
5-Year Revenue Growth: 22.15%
Analyst Upside: 24.23%
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the best stocks to invest in for the long term. In a report released on August 15, Jonathan Ruykhaver from Cantor Fitzgerald reiterated a Buy rating on Palo Alto Networks, Inc. (NASDAQ:PANW) and set a price target of $223.00.
Palo Alto Networks, Inc. (NASDAQ:PANW) reported a 15% year-over-year growth in its total revenue for fiscal Q3 2025 to $2.3 billion, compared to total revenue of $2.0 billion in the same quarter last year.
The company also experienced a rise in non-GAAP net income, going from $0.5 billion in fiscal Q3 2024, to $0.6 billion in fiscal Q3 2025.
GAAP net income for the quarter was $0.37 per diluted share, compared to $0.39 per diluted share in fiscal Q3 2024.
Palo Alto Networks, Inc. (NASDAQ:PANW) provides network security solutions to service providers, enterprises, and government entities. Its operations are divided into the following geographical segments: the United States, Israel, and Other Countries.
8. Autodesk, Inc. (NASDAQ:ADSK)
5-Year Revenue Growth: 13.13%
Analyst Upside: 22.07%
Number of Hedge Fund Holders: 82
Autodesk, Inc. (NASDAQ:ADSK) is one of the best stocks to invest in for the long term. RBC Capital analyst Matthew Hedberg maintained a Buy rating on Autodesk, Inc. (NASDAQ:ADSK) on August 11, setting a price target of $345.00.
Autodesk, Inc. (NASDAQ:ADSK) reported that its fiscal Q1 2026 revenue rose 15%, 16% on a constant currency basis, to $1.6 billion.
Its full-year fiscal 2026 outlook “assumes a projected annual effective tax rate of 27 to 30 percent for GAAP, which includes the effects of the utilization of US deferred tax assets, and 19 percent for non-GAAP results”.
Management also reported that the fiscal Q2 2026 outlook assumes an estimated annual effective tax rate of 26% to 28% for GAAP.
Autodesk Inc. (NASDAQ:ADSK) offers three-dimensional design, engineering, and entertainment technology solutions for engineering, architecture, construction, product design, media, manufacturing, and entertainment industries.
The company’s professional 3D software programs, like AutoCAD, allow professionals to design industry components, 3D models, and buildings.
7. Applied Materials, Inc. (NASDAQ:AMAT)
5-Year Revenue Growth: 11.96%
Analyst Upside: 26.73%
Number of Hedge Fund Holders: 83
Applied Materials, Inc. (NASDAQ:AMAT) is one of the best stocks to invest in for the long term. In a report released on August 15, Stacy Rasgon from Bernstein maintained a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) with a price target of $195.00.
The rating update came after Applied Materials, Inc. (NASDAQ:AMAT) released its fiscal Q3 2025 results on August 14, reporting record revenue of $7.30 billion, up 8% year-over-year.
GAAP EPS for the quarter was $2.22, along with record non-GAAP EPS $2.48, reflecting a growth of 8% and 17% year-over-year, respectively.
Applied Materials, Inc. (NASDAQ:AMAT) also reported a GAAP gross margin of 48.8% and a non-GAAP gross margin of 48.9%.
Applied Materials, Inc. (NASDAQ:AMAT) provides manufacturing equipment, software, and services to the semiconductor and related industries. It operates through the Semiconductor Systems, Applied Global Services, and Display & Adjacent Markets segments.
6. Intuitive Surgical, Inc. (NASDAQ:ISRG)
5-Year Revenue Growth: 15.98%
Analyst Upside: 24.31%
Number of Hedge Fund Holders: 106
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the best stocks to invest in for the long term. On July 23, Baird raised the firm’s price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $600 from $590, keeping an Outperform rating on the shares.
The firm told investors that it remains a buyer of the stock, as its key performance indicators “continue to fire on all cylinders.”
The same day, Leerink Partners analyst Mike Kratky also reiterated a bullish stance on Intuitive Surgical, Inc. (NASDAQ:ISRG), giving the stock a buy rating.
The analyst expressed optimism about the company’s multiple growth drivers and commercial execution, raising the EPS estimates for the upcoming years to reflect confidence in Intuitive Surgical, Inc.’s (NASDAQ:ISRG) ability to sustain its momentum.
Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provide robotic-assisted surgical solutions and invasive care. Its products include the Ion Endoluminal and the Da Vinci Surgical systems.
5. ServiceNow, Inc. (NYSE:NOW)
5-Year Revenue Growth: 24.98%
Analyst Upside: 35.49%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the best stocks to invest in for the long term. On July 24, Piper Sandler analyst Rob Owens maintained a Buy rating on ServiceNow, Inc. (NYSE:NOW) and set a price target of $1,150.00.
The rating followed ServiceNow, Inc.’s (NYSE:NOW) announcement of its fiscal Q2 2025 results on July 23, surpassing guidance across all topline growth and profitability metrics for the quarter.
Total revenues for the quarter reached $3.215 billion, reflecting a 22.5% year‑over‑year growth, 21.5% in constant currency. Subscription revenues also grew to $3.113 million in Q2 2025, up 22.5% year‑over‑year, 21.5% in constant currency.
ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.
4. Adobe, Inc. (NASDAQ:ADBE)
5-Year Revenue Growth: 13.41%
Analyst Upside: 35.27%
Number of Hedge Fund Holders: 111
Adobe, Inc. (NASDAQ:ADBE) is one of the best stocks to invest in for the long term. Morgan Stanley analyst Keith Weiss maintained a Buy rating on Adobe, Inc. (NASDAQ:ADBE) on August 1, setting a price target of $510.00.
The analyst based the optimistic rating on Adobe, Inc.’s (NASDAQ:ADBE) solid growth potential and strategic positioning, telling investors that the company’s management has excelled in developing a solid foundation to support sustainable growth in the rapidly evolving design and marketing technology sectors.
This includes expanding opportunities through the integration of content creation and content activation, and leveraging its strong position in the Creative Professionals market.
The analyst added that Adobe, Inc.’s (NASDAQ:ADBE) initiatives to leverage Adobe Express to penetrate the low-end market reflect potential due to widespread use of Adobe Acrobat as a gateway.
Adobe Inc. (NASDAQ:ADBE) is a US-based global technology company that offers services, products, and solutions to fuel digital and immersive experiences and imagine, manage, optimize, and engage with content across surfaces.
3. Eli Lilly and Company (NYSE:LLY)
5-Year Revenue Growth: 18.34%
Analyst Upside: 28.35%
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best stocks to invest in for the long term. In a report released on August 13, Seamus Fernandez from Guggenheim maintained a Buy rating on Eli Lilly and Company (NYSE:LLY) and set a price target of $875.00.
The rating update came after Eli Lilly and Company (NYSE:LLY) reported its fiscal Q2 2025 earnings on August 7, with revenue growing 38% to $15.56 billion, driven primarily by volume growth from Zepbound and Mounjaro.
Eli Lilly and Company (NYSE:LLY) raised the midpoint of its 2025 full-year revenue guidance by $1.5 billion, taking it to the $60 billion to $62 billion range. It also raised its reported EPS guidance to be in the $20.85 to $22.10 range.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
2. Alibaba Group Holding Limited (NYSE:BABA)
5-Year Revenue Growth: 14.35%
Analyst Upside: 23.74%
Number of Hedge Fund Holders: 125
Alibaba Group Holding Limited (NYSE:BABA) is one of the best stocks to invest in for the long term. In a report released on July 24, Wei Fang from Mizuho Securities maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) with a price target of $149.00.
Alibaba Group Holding Limited’s (NYSE:BABA) financial results for the quarter and fiscal year ended March 31 reflected the positive effects of its ‘user first, AI-driven’ strategy.
Cloud Intelligence Group’s quarterly revenue growth rose to 18%, attributed to the strong demand for AI. AI-related product revenue attained triple-digit growth for the seventh consecutive quarter.
The company also reported a revenue growth of 7% and EBITA growth of 36% in the quarter.
Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.
1. Microsoft Corporation (NASDAQ:MSFT)
5-Year Revenue Growth: 14.52%
Analyst Upside: 21.40%
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to invest in for the long term. Phillip Securities analyst Paul Chew maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) on August 4, raising the price target from $480 to $550.
Microsoft Corporation (NASDAQ:MSFT) reported its fiscal Q4 2025 results on July 30, reporting $76.4 billion in revenue, up 18%, 17% in constant currency, compared to the corresponding period last year.
Operating income for the quarter rose 23% (22% in constant currency) to $34.3 billion, while net income grew 24% (22% in constant currency) to $27.2 billion.
Microsoft Corporation (NASDAQ:MSFT) develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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